Sweden’s GDP Declines 0.2% in Q1 2026

Sweden’s gross domestic product fell by 0.2 percent in the first quarter of 2026, after a strong rise in the previous quarter, according to Statistics Sweden. Seasonally adjusted, the decline was 0.2 percent from the prior quarter, but GDP was 2.0 percent higher than in the first quarter of 2025 when corrected for calendar effects. Household consumption rose 0.6 percent, led by transport and housing, while public consumption fell 2.1 percent – state spending down 7.6 percent, municipal spending up 0.1 percent. Inventory investments added 0.8 percent, but fixed gross investment fell 2.3 percent, largely due to a 9.6 percent drop in public authority investment. Exports rose 2.2 percent and imports 2.5 percent, leaving net trade at a 0.1 percent decline. Business added value fell 0.2 percent; manufacturing up 1.1 percent, services down 0.8 percent. Employment rose 0.1 percent, hours worked fell 0.3 percent, and business labor productivity grew 0.3 percent.

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